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What are the risks of ignoring debt collectors?

On Behalf of | May 7, 2024 | Collections Defense

Debt accumulates for any number of reasons: medical expenses, unexpected job loss or simply the increasing cost of living. These financial burdens can gradually balloon a debt into an overwhelming amount. As creditors ramp up their collection efforts, the stress of the situation can leave you feeling paralyzed and unsure of how to respond.

Although avoiding debt collectors may offer temporary relief, it may lead to serious repercussions.

Legal actions creditors can take

Choosing not to respond to debt collectors will not make them disappear. They are likely to take other legal steps to recover the money you owe, such as:

  • Find other ways to contact you: Creditors are within their rights to make home visits, call you at home and contact people you know in an attempt to reach you.
  • Request a court order for garnishment: Creditors can obtain court orders to garnish your wages or take money directly from your bank account.
  • File a lawsuit against you: Creditors can sue you and request the court to have you pay any associated collection fees, interest and attorney’s fees on top of your debts.

Avoiding creditors denies you the chance to settle your debts responsibly. This can lead to a damaged credit score, increased debt, and more stress.

How securing legal representation can help

While hiring legal representation might not be practical for every debt situation, it is an option worth exploring, especially if you are facing court action or struggling to negotiate sizable debts. Moreover, not all collection practices are legal, and many are bordering on harassment. An experienced attorney can offer guidance, negotiate on your behalf, represent you in court and fight to protect your rights.

Ignoring debt collectors may do more harm than good. Addressing the situation promptly and securing an attorney may be a more effective strategy for achieving debt relief.